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FULLY OPERATIONAL   

OPERATING STATUS

FULLY OPERATIONAL  

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  • Question

    Can the current in-house unit price be used to determine adequate completion and establish price cost reasonableness for the proposed unit price.?

    Answer

    From your question, it appears that you do not have competition for the material you are acquiring from your supplier.  The new threshold for certified cost or pricing data for the DoD is $2 M and if your item is under that, you would provide other than certified cost or pricing data.  There are many techniques to justify the price to be fair and reasonable thus using an established in-house price can be used as a data point in determining a fair price.  You might consider incorporating additional supporting data such as previous prices charged (historical data), a breakdown of material (if possible) and material handling charges, prices charged any other customers, etc.  The bottom line that you are driving to is, how will the government determine this material to be a fair and reasonable price.  Please consult with both the contracting officer as well as DCMA Contract Purchasing System Review (CPSR) team for assistance. 
     


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